PRAGUE, Nov 2 (Reuters) - The number of Czech bankruptcy filings rose 71 percent year on year, a research by debt collection and research firm Creditreform showed on Monday.
Czech firms have been hit as export orders fell at a double-digit rate during the economic crisis. Policymakers have warned the worst impact on the business sector is yet to come.
A total of 7,458 bankruptcy filings were lodged during Jan-Oct. 31, of which 4,290 were companies and the rest were individuals, Creditreform said.
The drop in exports and tight credit have dragged on the Czech economy, which contracted by 5.5 percent year-on-year in the second quarter, despite evidence of improving industry and recovering demand from Europe.
Creditreform said it expected the total number of bankruptcies for the whole 2009 would rise 70 percent to 9,000. Company bankruptcies will reach 5,000, the research showed.
(Reporting by Jana Mlcochova; Editing by Ron Askew)